Novo Nordisk A/s Class B · OMXCOP:NOVO_B
Novo Nordisk A/s Class B — FY2007 Earnings Presentation
59 slides from Novo Nordisk A/s Class B's earnings presentation, 2008
Slide 1: A focused healthcare company
Investor presentation A focused healthcare company Full year 2007 roadshow presentation
Slide 2: Forward-looking statements
Investor presentation Full year 2007 Slide no 2 Forward-looking statements Novo Nordisk’s reports filed with or furnished to the US Securities and Exchange Commission (SEC), including this document as well as the company’s Annual Report 2007 and Form 20-F both expected to be filed with the SEC in Fe
Slide 3: Agenda
Investor presentation Full year 2007 Slide no 3 Agenda • Highlights and strategy • Sales update • R&D update • Financials
Slide 4: Highlights
Investor presentation Full year 2007 Slide no 4 Highlights Market performance • Sales growth driven by modern insulins: +35% in local currencies • NovoSeven® growth continued: +10% in local currencies • Solid Norditropin® growth: +11% in local currencies Research and Development performance • Promis
Slide 5: Sustainability highlights
Investor presentation Full year 2007 Slide no 5 Sustainability highlights • UN-observed World Diabetes Day • Extension of funding to the World Diabetes Foundation • Voted best-in-class in Dow Jones Sustainability Indexes • Climate change initiatives
Slide 6: Novo Nordisk's corporate strategy
Investor presentation Full year 2007 Slide no 6 Novo Nordisk’s corporate strategy Indications Compounds/Capabilities Strategic focus Insulin • Diabetes Maintain leadership GLP-1 Drug delivery and protein expertise Global commercial infrastructure GLP-1 • Obesity/pre-diabetes Explore opportunity Othe
Slide 7: Growth in Novo Nordisk's insulin franchise looks set to continue
Investor presentation Full year 2007 Slide no 7 Growth in Novo Nordisk’s insulin franchise looks set to continue Rapid increase in number of World insulin market growth people with diabetes 2007 2025 Volume: 6.3% 350 DKK: 10.7% 300 2007: 246 million USD: 19.3% 2025: 380 million DKK 52.6bn 250 GR CA
Slide 8: More than 17 million people diagnosed with diabetes in the US
Investor presentation Full year 2007 Slide no 8 More than 17 million people diagnosed with diabetes in the US People diagnosed with diabetes in the US Diabetes in the US in 2007 20 • 24.2 million people with diabetes 17.5 • 17.4 million diagnosed 15 Million people 12.1 • 6.6 million undiagnosed 10.3
Slide 9: GLP-1 will explore virgin territory between OADs and insulins
Investor presentation Full year 2007 Slide no 9 GLP-1 will explore virgin territory between OADs and insulins World DKK MAT market billion growth OAD 66 0% OAD Insulin Insulin 53 8% GLP-1 3 45% GLP-1 Note: Absolute data represent MAT November 2007 and growth data represent MAT November 2007 over MAT
Slide 10: Sales update
Investor presentation Full year 2007 Slide no 10 Sales update
Slide 11: Insulin world market leader with 53% market share
Investor presentation Full year 2007 Slide no 11 Insulin world market leader with 53% market share Europe North America Novo Nordisk #1 Novo Nordisk #1 Market share 57% Market share: 43% International Operations Japan & Oceania Novo Nordisk #1 Novo Nordisk #1 Market share: 59% Market share: 73% Note
Slide 12: Key products continue to drive growth – full year 2007
Investor presentation Full year 2007 Slide no 12 Key products continue to drive growth – full year 2007 Sales as reported Growth analysis HRT Norditropin® +4% Local currencies Growth Share of +6% 4% growth 8% Modern insulins 35% 76% Diabetes care NovoSeven® +9% Human insulins -3% -8% +4% 14% Insulin
Slide 13: Modern insulins
Investor presentation Full year 2007 Slide no 13 Modern insulins World market share of total segment Modern insulin sales as reported 50% Levemir® NovoRapid® DKK 2.6bn NovoRapid® NovoMix® +84% DKK 6.7bn 40% (+91%*) Levemir® 18% +20% (+26%*) 30% NovoMix® DKK 4.7bn 34% 48% +24% 20% (29%*) 10% 0% Novem
Slide 14: A continued increase in modern insulin market share
Investor presentation Full year 2007 Slide no 14 A continued increase in modern insulin market share IMS world modern insulin Modern insulin penetration market shares, volume 70% Novo Nordisk 60% Eli Lilly Sanofi-Aventis 52% 50% 21% Modern insulin 40% 30% Human insulin 20% 10% 0% Q3 Q3 Q3 Q3 2002 20
Slide 15: NovoSeven®
Investor presentation Full year 2007 Slide no 15 NovoSeven® NovoSeven® sales development Key observations for 2007 • Growth in 2007 of 10% in local 1.600 currencies and 4% as reported % : 11 1.400 CA GR • North American sales main 1.200 contributor to growth DKK million 1.000 • Spontaneous bleeds fo
Slide 16: Norditropin®
Investor presentation Full year 2007 Slide no 16 Norditropin® Norditropin® sales development Key observations for 2007 • Growth in 2007 of 11% in local currencies and 6% as reported 1.000 900 11 % • North American sales main : GR contributor to growth 800 CA DKK million 700 • US approval for treatme
Slide 17: Sales by region
Investor presentation Full year 2007 Slide no 17 Sales by region - full year 2007 Sales as reported Growth analysis Japan & Oceania -5% Europe Local Growth Share of +7% currencies growth 11% International Europe 7% 21% Operations North America 22% 53% +12% 17% 39% International 18% 23% Operations Ja
Slide 18: Levemir® reinforces modern insulin market leadership in Europe…
Investor presentation Full year 2007 Slide no 18 Levemir® reinforces modern insulin market leadership in Europe… Share of total modern insulin Novo Nordisk’s share of long- sales in Europe acting modern insulin in Europe 30% 80% Novo Nordisk Eli Lilly 70% Sanofi-Aventis 25% 60% 20% 50% 40% 15% 30% 1
Slide 19: … and total market leadership in the US
Investor presentation Full year 2007 Slide no 19 … and total market leadership in the US US total insulin market Novo Nordisk’s share of long- share development acting modern insulin in the US 80% 10% 70% Novo Nordisk 9% Eli Lilly 60% Sanofi-Aventis 8% 7% 50% 6% 40% 5% 30% 4% 3% 20% 2% 10% 1% 0% 0%
Slide 20: Novo Nordisk clear leader within emerging markets…
Investor presentation Full year 2007 Slide no 20 Novo Nordisk clear leader within emerging markets… International Operations International Operations insulin sales development insulin market shares Index 70% local currencies 58% 250 60% 6% :1 50% Novo Nordisk A GR 200 C Eli Lilly 40% Sanofi-Aventis
Slide 21: … driven by China
Investor presentation Full year 2007 Slide no 21 … driven by China China sales China insulin market shares Index 70% local currencies 61% 600 60% Novo Nordisk 500 50% Eli Lilly % : 43 40% Sanofi-Aventis 400 R C AG JS. Xuzhou Biochemical 30% Sh. Biochem & Phar 300 Tonghua Dongbau 200 20% 100 10% 0 0%
Slide 22: R&D update
Investor presentation Full year 2007 Slide no 22 R&D update
Slide 23: Invention across multiple dimensions will build future R&D portfolio…
Investor presentation Full year 2007 Slide no 23 Invention across multiple dimensions will build future R&D portfolio… Future assets Next gereration insulins Next generation devices Innovation Short-acting rFVIIa analogue Next generation Long-acting hGH Commercial assets Ultra low-dose HRT New parad
Slide 24: … to sustain product replacement power
Investor presentation Full year 2007 Slide no 24 … to sustain product replacement power Yesterday Today Tomorrow Actrapid® NovoRapid® Alternative delivery Diabetes Mixtard® NovoMix® NN5401 Insulatard® Levemir® NN1250 Biopharm Plasma products NovoSeven® NN1731, NN7128 Pituitary hGH Norditropin® Long-
Slide 25: Development portfolio – diabetes
Investor presentation Full year 2007 Slide no 25 Development portfolio – diabetes Compound Type Indication Phase NovoMix® 50 Modern insulin Type 1+2 Launched in Europe, filed in the US NovoMix® 70 Modern insulin Type 1+2 Launched in Europe, filed in Japan Liraglutide Once-daily GLP-1 analogue Type 2
Slide 26: Strong clinical profile of liraglutide
Investor presentation Full year 2007 Slide no 26 Strong clinical profile of liraglutide Key observations* • Five phase 3 studies completed • Ready for regulatory filing in the US and EU in Q2 2008 • Significant HbA1c reduction: • 1.5 - 2.0% in monotherapy • 1.0 – 1.5% in combination with OADs • Sign
Slide 27: Positive results from Japanese phase 3 studies
Investor presentation Full year 2007 Slide no 27 Positive results from Japanese phase 3 studies - expected filing Q3 2008 Monotherapy Combination with SU • Study design • Study design • 24-week study with 411 • 24-week study with 267 Japanese type 2 patients Japanese type 2 patients • HbA1c at initi
Slide 28: Development portfolio – haemostasis
Investor presentation Full year 2007 Slide no 28 Development portfolio – haemostasis Compound Indication Phase NovoSeven® Heat-stable formulation Filed NovoSeven® Trauma Phase 3 NovoSeven® Spinal surgery (dose escalation) Phase 2 completed NovoSeven® Cardiac surgery (dose escalation) Phase 2 complet
Slide 29: Inflammation well suited to leverage Novo Nordisk's core capabilities
Investor presentation Full year 2007 Slide no 29 Inflammation well suited to leverage Novo Nordisk’s core capabilities Protein focus • Protein therapeutics mainstay of Immunology focus modern anti-inflammatory therapies • Immune system direct • Drug delivery and lifecycle pathogenic mechanism for al
Slide 30: Development portfolio - other biopharmaceuticals
Investor presentation Full year 2007 Slide no 30 Development portfolio - other biopharmaceuticals Compound Indication Phase Activelle® Low Dose Hormone replacement therapy Launched in the US, filed in Europe1 Vagifem® Low Dose Hormone replacement therapy Filed in the US, phase 3 in Europe Norditropi
Slide 31: Financials
Investor presentation Full year 2007 Slide no 31 Financials
Slide 32: Financial results
Investor presentation Full year 2007 Slide no 32 Financial results DKK million 2007 2006 % change Sales 41,831 38,743 8 Gross profit 32,038 29,158 10 Gross margin 76.6% 75.3% Sales and distribution costs 12,371 11,608 7 Percent of sales 29.6% 30.0% Research and development costs 8,538 6,316 35 -here
Slide 33: Solid gross margin development
Investor presentation Full year 2007 Slide no 33 Solid gross margin development Gross margin improvement analysis Key observations 80% Annual average • Gross margin improvement in 78% 2007 of around 130 basis points 76.6 • Productivity gains are prime 76% 75.3 contributor – reflecting significant 74
Slide 34: Currency development and hedging gains from USD
Investor presentation Full year 2007 Slide no 34 Currency development and hedging gains from USD Annual impact on operating Spot rates profit of a 5% movement in currency (DKK million) Quarterly hedging gains or losses 2008 660 300 USD 470 250 630 USD-related 100 200 JPY 140 600 150 USD/DKK DKK mill
Slide 35: Outlook 2008
Investor presentation Full year 2007 Slide no 35 Outlook 2008 • Sales growth expectations: Key currency rates DKK 2006 2007 Current • Slightly more than 10% in local currencies per 100 average average rate* • Around 3.5 percentage points lower as reported USD 595 545 505 JPY 5.11 4.62 4.73 • Operati
Slide 36: Cash returned to shareholders
Investor presentation Full year 2007 Slide no 36 Cash returned to shareholders Dividend and payout ratio Share repurchase programme 35% 35 5 5 4.8 4.5 Dividend per share, DKK 4.2 4.5 33 4 4 Payout ratio, % DKK billion 3.0 31 3 3 29 2 2 Payout ratio 27 Dividend per share 1 1 25 0 0 2003 2004 2005 200
Slide 37: Novo Nordisk - concluding remarks
Investor presentation Full year 2007 Slide no 37 Novo Nordisk - concluding remarks Strategic position Key growth drivers #1 in the global insulin market • Leadership in diabetes care with full portfolio of modern insulins #1 in the global modern insulin segment • Promising GLP-1 compound #1 in the g
Slide 38: Investor information
Investor presentation Full year 2007 Slide no 38 Investor information Share information Investor Relations Novo Nordisk’s B shares are listed contacts on the stock exchanges in Novo Nordisk A/S Investor Relations Copenhagen and London. Its ADRs Novo Allé, DK-2880 Bagsværd are listed on the New York
Slide 39: Appendices
Investor presentation Full year 2007 Slide no 39 Appendices
Slide 40: Solid insulin market growth - Novo Nordisk market leadership
Investor presentation Full year 2007 Slide no 40 Solid insulin market growth - Novo Nordisk market leadership Market size Growth rates Novo Nordisk market share Market Novo Nordisk US 7,0% 41% 35% 4,1% Europe 3,6% 46% 57% 5,2% Japan 4,6% 73% 4% 5,0% World 5,5% 53% 100% 6,0% Note: Volume data. Market
Slide 41: Long-term financial targets
Investor presentation Full year 2007 Slide no 41 Long-term financial targets Performance against long-term financial targets Financial In % 2003 2004 2005 2006 2007 targets Operating profit growth 8.4 8.7 15.9 12.7 (1.9) 15 Operating profit growth excl AERx®1) - - - - 12.6 Operating margin 24.6 24.0
Slide 42: European modern insulin conversion - NovoRapid®
Investor presentation Full year 2007 Slide no 42 European modern insulin conversion - NovoRapid® Modern insulin penetration short-acting segment Share of short-acting segment 35% NovoRapid® 30% 25% Humalog Human insulin 20% 58% 15% 10% Modern insulin 5% Apidra 0% Q3 Q3 Q3 Q3 2002 2007 2002 2007 Note
Slide 43: European modern insulin conversion - NovoMix®
Investor presentation Full year 2007 Slide no 43 European modern insulin conversion - NovoMix® 30 Modern insulin penetration premixed segment Share of premixed segment 30% NovoMix® 30 25% 20% Human insulin 15% 10% Humalog Mix 25 41% 5% Modern insulin 0% Q3 Q3 Q3 Q3 2002 2007 2002 2007 Note: Quarterl
Slide 44: European modern insulin conversion - Levemir®
Investor presentation Full year 2007 Slide no 44 European modern insulin conversion - Levemir® Modern insulin penetration Novo Nordisk’s share of long- long-acting segment acting modern insulin in Europe 26% 26% 24% 22% 20% 18% Human insulin 16% 14% 12% 54% 10% 8% Modern insulin 6% 4% 2% 0% Q3 Q3 Q2
Slide 45: US modern insulin conversion - NovoLog®
Investor presentation Full year 2007 Slide no 45 US modern insulin conversion - NovoLog® Modern insulin penetration short-acting segment Share of short-acting segment 50% 40% Humalog Human insulin 71% 30% NovoLog® 54% 20% Modern insulin 10% Apidra 0% Q3 Q3 Q3 Q3 2002 2007 2002 2007 Note: Quarterly v
Slide 46: US modern insulin conversion - NovoLog® Mix 70/30
Investor presentation Full year 2007 Slide no 46 US modern insulin conversion - NovoLog® Mix 70/30 Modern insulin penetration premixed segment Share of premixed segment 30% 25% NovoLog® Mix 70/30 Human insulin 20% 15% Humalog Mix 25 10% 34% 5% Modern insulin 0% Q3 Q3 Q3 Q3 2002 2007 2002 2007 Note:
Slide 47: US modern insulin conversion - Levemir®
Investor presentation Full year 2007 Slide no 47 US modern insulin conversion - Levemir® Modern insulin penetration Novo Nordisk’s share of long- long-acting segment acting modern insulin in the US 10% 9% 8% Human insulin 7% 6% 67% 5% 4% 3% 2% Modern insulin 1% 0% Q3 Q3 April November 2002 2007 2006
Slide 48: Insulin segmentation - Europe and the US
Investor presentation Full year 2007 Slide no 48 Insulin segmentation - Europe and the US Europe US 60% 60% 50% 50% 40% 40% 30% 30% 20% Long-acting 20% Long-acting Premix Premix 10% 10% Short-acting Short-acting 0% 0% Q3 Q3 Q3 Q3 2002 2007 2002 2007 Note: Quarterly volume data Source: IMS
Slide 49: Insulin segmentation - Japan
Investor presentation Full year 2007 Slide no 49 Insulin segmentation - Japan Japan 60% 50% 40% 30% 20% Long-acting 10% Premix Short-acting 0% Q3 Q3 2002 2007 Note: Quarterly volume data Source: IMS
Slide 50: Biosimilars compete in a declining segment
Investor presentation Full year 2007 Slide no 50 Biosimilars compete in a declining segment Modern insulin 52% Patent protected Human insulin Q2 2002 Q3 2007 Q2 2010 Notes: Quarterly volume data. From Q2 2007 onwards it is estimated that 6% of the market will be converted each year and that volume w
Slide 51: Insulin is the ultimate treatment
Investor presentation Full year 2007 Slide no 51 Insulin is the ultimate treatment Insulin is the ultimate treatment Key observations • A clear focus on the need for intensifying treatment of diabetes, both via the use of OADs and insulin β-Cell function • The number of type 2 patients using insulin
Slide 52: Insulin secretion
Investor presentation Full year 2007 Slide no 52 Insulin secretion To be replaced by new data from MKT 800 People without diabetes Insulin Secretion (pmol/min) 700 Type 2 diabetes 600 500 400 300 200 100 0600 1000 1400 1800 2200 0200 0600 Source: O'MEARA et al. Am. J. Medicine, 1990; 89.
Slide 53: Significantly reduced risk of hypoglycaemia when switching from Lantus to Levemir®
Investor presentation Full year 2007 Slide no 53 Significantly reduced risk of hypoglycaemia when switching from Lantus to Levemir® Baseline 70.0 67.5 –20.2* Six-month follow-up 60.0 n = 680 T1 patients Number of events *p<0.0001 per patient-year 50.0 47.3 40.0 30.0 –9.0* 20.0 –2.1* 16.4 10.0 7.4 3.
Slide 54: Weight benefit across BMI when switching from Lantus to Levemir®
Investor presentation Full year 2007 Slide no 54 Weight benefit across BMI when switching from Lantus to Levemir® 0.5 Change in weight (kg) –0.03 –0.5 –0.52 –0.85 –1.5 –1.74 –2.03 –2.5 BMI <25 25–<27 27–<29 29–<31 ≥31 T1 patients = 251 99 80 51 51 Source: Landstedt-Hallin et al, 2244-PO, ADA 2007
Slide 55: Hormone replacement therapy area supported by low-dose versions
Investor presentation Full year 2007 Slide no 55 Hormone replacement therapy area supported by low-dose versions Novo Nordisk HRT Strategic HRT products market share worldwide Activelle®/Activella® • Combined oestrogen and 70% Wyeth progestogen treatment of hot Novo Nordisk flushes and other menopau
Slide 56: Attractive profile of rFVIIa analogue
Investor presentation Full year 2007 Slide no 56 Attractive profile of rFVIIa analogue Velocity (mm*100/sec) 20 Severe haemophilia A + rFVIIa 2 µg/mL + NN1731 2 µg/mL Healthy male • NN1731 has been found to 15 induce a faster rate of thrombin formation than 10 obtainable with NovoSeven® • Phase 1 in
Slide 57: NovoSeven® - a unique mechanism of action
Investor presentation Full year 2007 Slide no 57 NovoSeven® - a unique mechanism of action FVIIa/NovoSeven® Faster haemostasis leads to Tissue factor • Fewer transfusions / transfusion- free surgery • Reduced re-bleeding • Faster recovery • Reduced morbidity and mortality • Improved quality of life
Slide 58: IL-21 clinical programme
Investor presentation Full year 2007 Slide no 58 IL-21 clinical programme IL-21 mode of action Four indications CD4+ T • Malignant melanoma as TH cells monotherapy, phase 2 trial with up to 40 patients • Renal cell carcinoma in IL-21 combination with Sutent® (sunitinib), phase 1/2 with up to 80 pati
Slide 59: Anti-KIR being developed in collaboration with Innate Pharma
Investor presentation Full year 2007 Slide no 59 Anti-KIR being developed in collaboration with Innate Pharma Mode of action Key observations Anti-KIR MoA • Unmet need in AML Tumour • Most common leukaemia in NK Cell adults: around 12,000 new cases per year in the US of which 75% die 100 • Phase 1 c